Deere & Company (DE) Q4 2024 earnings summary

Executive summary

• FY24 net income was $7.1B ($25.62/share), down from $10.2B ($34.63/share) in FY23; Q4 net income was $1.2B ($4.55/share), both down year-over-year.

• FY24 net sales and revenues were $51.7B, down 16%; Q4 net sales and revenues were $11.1B, down 28%.

• Delivered 18.2% full-year operating margins and 13.1% Q4 equipment margins amid challenging markets.

• Proactive inventory management, cost controls, and operational adjustments positioned the business for expected market contraction in 2025.

• Special items in 2024 included legal settlements, impairment charges, employee separation costs, and valuation allowance on assets held for sale.

Financial highlights

• FY24 equipment operations net sales were $44.8B, down 19%; Q4 equipment operations net sales were $9.3B, down 33%.

• Q4 operating profit was $1.45B, down 52% year-over-year; full-year operating profit was $9.04B, down 30%.

• FY24 EPS was $25.62; Q4 EPS was $4.55, both down from prior year.

• Returned over $5.6B to shareholders via dividends and share buybacks.

• Operating cash flow from equipment operations was $6.9B.

Outlook and guidance

• FY25 net income forecasted at $5.0–$5.5B; EPS guidance around $19; cash flow from equipment operations projected at $4.5B–$5.5B.

• Equipment operations sales expected to decline ~13% in FY25; overall net sales expected to decline ~15%.

• Effective tax rate guidance between 23% and 25%.

• Q1 FY25 sales expected down 15–20% sequentially from Q4, with margins 300–400 bps below full-year guide.

• Segment outlook: Production & Precision Ag net sales down ~15%, Small Ag & Turf down ~10%, Construction & Forestry down 10–15%, Financial Services net income forecast $750M.